InvestorQ : What does the latest Services PMI number indicate for November 2020?
Anamika Sodhani made post

What does the latest Services PMI number indicate for November 2020?

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Angel dcosta answered.
3 months ago
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For the month of November 2020, the Services PMI stayed in expansionary mode but, like the Manufacturing PMI, it appear to have lost momentum over October. That is normally bound to happen after a very sharp rally in PMI in a short span of time.

The dichotomy was visible with global service demand lagging domestic demand but that should improve once the airlines and other systems start to work. For November the PMI Services Index stood at 53.7 compared to 54.1 in October, which shows loss of momentum.

Since the PMI is above 50, it still indicates there is sufficient expansion in the services sector but lower PMI sequentially hints at momentum loss during the month. Of course, one month is too short a time to really determine a trend.

Transport and storage services performed the best while consumer services and even financial services lagged. Even the latest GDP number had shown pressure on financial services. New export orders fell sharply in November and that was key in driving PMI lower.

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